Problem:
A fixed asset with a cost of $27,660 and accumulated depreciation of $24,894 is traded for a similar asset priced at $54,268. Assuming a trade-in allowance of $4,851, the cost basis of the new asset in a transaction with commercial substance is
Select the correct answer.
- $4,851
- $22,809
- $2,085
- $54,268
Note: Please show how you came up with the solution.